SAVINGS ACCOUNTS
Money Compare can help you compare savings accounts to find the one that suits you best. There can be big variation between interest rates and account fees – choosing the right type of savings account can help make sure your money is working hard for you.
Whether you are looking for a new savings account to start saving, or looking for a better return for existing savings, we can help you compare the options and save.
Money Compare can help you compare savings account across the market to decide which the best is for you. The keys things to look for when comparing savings accounts are:
• How high the interest rate is
• How much the account fees are – there may be monthly fees, branch deposit fees, over-the-counter transaction fees, EFTPOS fees, electronic transaction fees, or ATM withdrawal fees
• Whether there are minimum and maximum deposit amounts
• Whether you can access your savings through branches or ATMs
What types of savings accounts are there?
Accounts will vary between banks, but the main types of savings accounts in New Zealand are:
• Online savings accounts – online savings accounts typically have no minimum balance requirement and no restrictions on the amount of withdrawals you can make. Online transactions are normally free, but you may have to pay a fee for manual withdrawals (eg: at a branch). They are a great way to earn interest on smaller balances, or on funds, you need ready access to.
• Ready access / on-call savings accounts – these types of savings accounts typically offer ready access to your savings and pay higher rates of interest for higher amounts of savings. Earn higher levels of interest without locking your money away.
• Serious Saver accounts – serious saver accounts pay a premium level of interest when you make no withdrawals from your account, and when you deposit a regular agreed amount every month. You typically pay withdrawal fees and receive lower interest rates when you make withdrawals. They are a great way to motivate yourself to stick to a savings goal.
• Notice Savings Accounts – notice savings accounts are a newer type of account in New Zealand and a good alternative to a term deposit. You need to deposit a minimum amount to start earning interest, and you can keep making deposits to your account when you like. You must give an agreed amount of notice to access your savings, for example, 32 or 90 days’ notice. Unlike a term deposit, you don’t sacrifice your interest to access your savings.
• Term deposits – term deposits allow you to lock away your savings for a set amount of time and earn a fixed level of interest. Terms usually range from 30 days to 5 years and you must deposit a minimum amount, with higher interest rates for longer periods. Your interest is usually paid out as a lump amount when the deposit matures or may be paid annually to a selected account for term deposits longer than 1 year.
• KiwiSaver – KiwiSaver is an easy and affordable way to save for your retirement. The fund is made up of contributions from you, your employer and the government during your working life, and invested by a KiwiSaver Provider on your behalf. Money Compare can help you compare KiwiSaver to find the one that suits you best.
Top tips for kickstarting your savings
• Set realistic savings goals. If your goals are too ambitious you may find yourself dipping into your savings. Our budget calculator can help you work out how much you can realistically save, and try to leave a little wriggle room in the budget.
• Try to set a tanglible goal. You may find it easier to stick to a savings plan if you have a real, tanglible goal in mind - for example a car, a holiday or a wedding. Our dreams come true calculator can help you feel a bit more passionate about saving and budgetting.
• Be consistent. Small consistent savings will all add up over time, as with all goals the key is to start your plan and stick to it. Our savings calculator can help you work out how much you need to save to reach your savings goals.
• Pay yourself. Get into a habit of transferring your savings as soon as you are paid, instead of waiting until the end of the month to save what’s left
• Make your savings automatic. Set up an automatic payment, so your savings are automatically sent to your savings account
• Remove temptation. Put your savings into an online savings account, notice savings account, or term deposit so it’s harder to access your savings.
TERM DEPOSITS
Term deposits allow you to lock away your savings for a set amount of time, and earn a fixed level of interest. Terms usually range from 30 days to 5 years and you must deposit a minimum amount, with higher interest rates for longer periods. Your interest is usually paid out as a lump amount when the deposit matures, or may be paid annually to a selected account for term deposits longer than 1 year.
Money Compare can help you compare term deposits to find the one that suits you best. There can be big variation between interest rates and account fees – choosing the right type of term deposit can help make sure your money is working hard for you.
Term deposits are a great way of putting your savings to work - we can help you compare the options and save.
Compare term deposits now (xxxx)
Compare Term Deposits
Money Compare can help you compare term deposits across the market to decide which the best is for you. The keys things to look for when comparing term deposits are:
- How high the interest rate is
- Whether there is a minimum investment amount
- Are there fees or penalties associated with early withdrawal of the funds?
- Any costs or fees associated with retrieving or transferring your fund at maturity
Is a term deposit a good option?
Pros of a term deposit:
- You receive an agreed interest rate at the end of your saving term, regardless of whether interest rates drop in the meantime
- “Locking” your savings away can remove the temptation to spend it
- Term deposits tend to be a lower-risk form of investment
Cons of a term deposit:
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Other types of online savings accounts may offer higher levels of interest, so you may wish to include these when you comparing savings accounts
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You may need to pay a penalty if you need to withdraw your money early. It can help to keep a contingency fund in a separate account for any unforeseen expenses during the term of your term deposit
